Investment banks are preparing sales pitches for Prudential, the UK's second largest insurer, after the company indicated that it is putting aside $2bn (€2.2bn) for a US acquisition.

Prudential, advised by UBS Warburg, failed earlier this year to buy American General, one of the US's largest insurers, when it was outbid by American International Group. Now Jonathan Bloomer, chief executive, has signalled that he has the cash to try and buy another US insurer.